There have been many challenges and a lot of controversy surrounding the Lifeline Assistance program, the government philanthropic movement that provides free mobile phones and service to low income eligible Americans. The Lifeline Assistance program provides free mobile phones plus free talk time and texts each month to eligible applicants. Each state has their own participating local telephone companies and private mobile carrier companies providing various monthly bundles and packages.
The Lifeline Assistance program has faced a number of obstacles. One of the most notable obstacles is the fraud and abuse that has occurred within this program. There have been opportunists, both participants in program and lax oversight by telecom operators, which have defrauded the program. As a result, this fraud has created hundreds of millions of dollars in waste.
Part of the problem with the Lifeline Assistance program has been due to the lack of stringent moderation and rules. When the program was first brought about in the 1980s, its original purpose was to provide affordable landlines to families living in rural communities. Because those rural areas of the USA did not have the infrastructure for telephone lines, there were often only a couple of companies that had a monopoly on providing telephone services in those regions. As a result, the monthly payment plans for those living in rural regions as opposed to those living in urban locations were extremely high.
The Telecommunications Act of 1986 states that all Americans have a right to affordable communications services. In order to address the telecommunication access between those living in urban areas who could afford telecommunication services and those in rural communities who are able to pay for service, the Federal Communications Commission created the Lifeline Assistance program.
Later on (in 2005) in response to Hurricane Katrina, the Bush Administration allowed the addition of free mobile phones to the program. This was in order to provide those who were homeless or stranded without running water, electricity, or phone service the opportunity to contact friends and loved ones, or to obtain emergency medical services in the aftermath of Hurricane Katrina.
Between the initiation of the free mobile phone program and now, there have been hundreds of millions of US dollars lost in fraudulent activity. In order to become eligible for a free mobile phone, one has to prove that they are either a recipient of another federal or state-run assistance program, or that they are living at or below 135% of the poverty line. Originally, a simple statement saying that an applicant fell into one of those two categories was sufficient. However, as time passed, it became increasingly obvious that many people were lying about their financial status in order to take advantage of receiving a free mobile phone with free minutes and texts.
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In 2013, the Federal Communications Commission decided to change certain rules about the Lifeline Assistance program, and the program underwent some serious amendments. Now, people must show official documentation outlining their eligibility, either with tax returns, pay stubs, or letters showing their participation in other government assistance programs.
There is now a central database that keeps track of all Lifeline participants, with address information, financial information, and social security numbers. This way, there can be no repeat or duplicate accounts from participants using fake social security numbers or false addresses.
Participants are only allowed one mobile phone per household. Any exceptions to this rule only apply to those who are independently cohabiting at the same address, but who make up separate family units.
Renewal of the Lifeline Assistance program happens annually. If there are any changes in financial status, they will be documented and recorded in the central database, so that those who no longer are eligible for the free mobile phone will automatically have their Lifeline accounts discontinued.
Another issue with the Lifeline Assistance program is the Universal Service Fund ‘’tax’’ that is charged on paying clients’ phone bills every month. What has consumers confused is what this charge is for and the public wonders if it is their tax money that is going to fund the free mobile phones.
The truth is that the Universal Service Fund charges a few dollars on paying clients’ monthly phone bills in order to raise money for the Lifeline Assistance program. Right-wing conservatives are upset about this, and feel that there is too much waste due to fraud to justify charging paying phone customers to fund the Lifeline Assistance program.
Private mobile companies are also taking advantage of the Lifeline Assistance program from the inside. Some private carriers that are not even participating in the program are offering free mobile phones to those who are living below the poverty line and then hooking them to a cheaper phone plan at the end of their trial run. This means that private carriers are now targeting markets that they would not otherwise have been selling to, and are now making millions off of the needy.
Lifeline also has a problem with marketing and public relations. Many of the providers of the Lifeline Assistance program are mass marketing through SMS’s and mail outs, providing many different options to the target audience. This is making information very confusing for many, creating more questions. There are even clever marketing tools out there being used by non-Lifeline participants or providers, simply using the keywords “Lifeline” or “Government Phones’’ in their websites and other marketing messages, creating more confusion.
In line with the marketing aspect is the ‘Obama phone’ fiasco. When this new label for the Lifeline free mobile phones went viral, there was a lot of misconception and misinformation out there about how this phone came about and whether it was the Obama Administration that put this into place.
The truth of the matter is that President Obama had very little to do with the Lifeline Phone, as it was created during the Reagan Administration. However, opponents of the Obama Administration blame the current President for the amount of fraud and wasted money that the Lifeline Assistance program has created.
What needs to be addressed is how effectively the Lifeline Assistance program is being marketed. What needs to happen is that true and accurate information has to be put out there, and those who have fraudulently obtained perks or money have to be brought to justice, or at least become known to the public.
The Lifeline Assistance program services mainly the elderly, the disabled, the poor, and the disenfranchised. It provides safety and security for those who otherwise would not be able to afford it. It provides dignity to those who do not have the physical ability to provide for themselves or their families. It gives a second chance to those who are looking for a second chance.
Do not let the Lifeline Assistance program’s philanthropic intentions get drowned out by the media and political opponents. However, the Lifeline Assistance program does need to start increasing its standards in terms of accountability, and it also needs to continue to increase its profile as a reliable and dependable social service for Americans.